NIO released fourth quarter 2021 earnings that missed analyst estimates. Dynamics linked to supply chain pressures throughout the year. The Shanghai-based company reported a net loss of 2.14 billion yuan (US $ 336.4 million) in the three months ended December 31. Analysts estimated a red of 1.51 billion yuan, according to Bloomberg consensus data. Revenue increased 49% from a year earlier to 9.9 billion yuan. The price of lithium has risen nearly 500% over the past year, adding cost pressures for EV makers. Chief William Li said: « We are still facing the challenges of increasing volatility in chip supplies, rising raw material costs, Covid, and the challenges in the changing international situation. 91,429 vehicles were delivered in 2021, which helped Nio achieve annual revenue of 36.1 billion yuan, in line with the projected 35.8 billion yuan. Just over 25,000 vehicles were shipped in the last quarter. Electric vehicle sales in China increased nearly 170% last year, according to data from the China Passenger Car Association. This underlines the potential of the Chinese market, which is the reference for the electric car sector. It is also important to note that the group has increased its 2022 sales forecast to more than 5.5 million, from a previous estimate of 4.8 million, in part because the tightening of the supply chain begins to loosen. which helped Nio achieve annual revenue of 36.1 billion yuan, in line with the projected 35.8 billion yuan. Just over 25,000 vehicles were shipped in the last quarter. Electric vehicle sales in China increased nearly 170% last year, according to data from the China Passenger Car Association. This underlines the potential of the Chinese market, which is the reference for the electric car sector. It is also important to note that the group has increased its 2022 sales forecast to more than 5.5 million, from a previous estimate of 4.8 million, in part because the tightening of the supply chain begins to loosen. which helped Nio achieve annual revenue of 36.1 billion yuan, in line with the projected 35.8 billion yuan. Just over 25,000 vehicles were shipped in the last quarter. Electric vehicle sales in China increased nearly 170% last year, according to data from the China Passenger Car Association. This underlines the potential of the Chinese market, which is the reference for the electric car sector. It is also important to note that the group has increased its 2022 sales forecast to more than 5.5 million, from a previous estimate of 4.8 million, in part because the tightening of the supply chain begins to loosen. 000 vehicles were shipped in the last quarter. Electric vehicle sales in China increased nearly 170% last year, according to data from the China Passenger Car Association. This underlines the potential of the Chinese market, which is the reference for the electric car sector. It is also important to note that the group has increased its 2022 sales forecast to more than 5.5 million, from a previous estimate of 4.8 million, in part because the tightening of the supply chain begins to loosen. 000 vehicles were shipped in the last quarter. Electric vehicle sales in China increased nearly 170% last year, according to data from the China Passenger Car Association. This underlines the potential of the Chinese market, which is the reference for the electric car sector. It is also important to note that the group has increased its 2022 sales forecast to more than 5.5 million, from a previous estimate of 4.8 million, in part because the tightening of the supply chain begins to loosen.
In fact, therefore, the accounts were below expectations but the guidance was raised. All this could result in a few sessions of volatility and then start up again. The more conservative could close the trade also given the presence of the weekend. For now let’s keep the long and see how it evolves.
Yesterday, NIO [NIO] closed at $21.98 (+0.5%). Today, in pre-trading, it is -2.1%. After the highs in the $70 area, the stock started a sharp decline that led it to break the 61.8% Fibonacci retracement at $26.28. The break confirmed NIO’s weakness by initiating further falls to the low of $13, with a loss from the highs of more than 80%. The first signs of recovery in strength have come in the last few sessions even if there is still a long way to go. On Friday, the stock broke the resistance of $20 at the end of the session with high volatility and a good dose of volumes. We point out that if you put together a weekly chart, bullish engulfing is evident and also confirmed by volumes. We point out that the bullish engulfing on the weekly is also present on indices of Chinese tech stocks.
We recommend going LONG on the stock by buying the Leverage Shares 3X NIO ETP (ISIN: XS2399365472) also listed on Borsa Italiana for a short term targets of around $26. Alert/stop loss should be below $18 (daily closing). From an investment perspective, however, we highlight the stock tracker certificates with 1x leverage (ISIN: XS2337093871).